UK unemployment rate maintains decade low

In March, the Office for National Statistics (ONS) reported that in the three-month period to January 2016 the number of people in the UK who were not in work but seeking and available to work, dropped to 1.68 million, down 28,000 from the previous quarter (Aug to Oct 2015).

 Maintaining a ten-year low in percentage terms, the rate of unemployment was stable at 5.1%. The figures showed that a total of 31.42 million people were in employment, which represents an increase of 116,000 on the previous quarter and an increase of 478,000 compared with one year earlier.

Regionally the North East of England had the highest unemployment rate (7.8%); the lowest rate was recorded in the East of England (3.6%). The EU’s statistical agency, Eurostat, reported that in January the Eurozone’s unemployment rate fell to 10.3%, its lowest rate since August 2011.

Across the pond, the US Labor Department reported in March that 242,000 jobs were added in February, far exceeding the prediction of 190,000. The unemployment rate in the US is at an eight-year low of 4.9%.

From a wage growth perspective, ONS data showed a 2.1% increase in average weekly earnings including bonuses for employees in Great Britain, in the year to January.

It has been reported that Scott Bowman, UK economist at Capital Economics, stated that the UK’s job recovery remained in “full swing” but cautioned that wage growth was “still fairly subdued by past standards, especially considering how much the labour market has tightened recently”.

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Positive jobs data...

In figures released in mid-July from the Office for National Statistics (ONS), comparing March-May 2013 with the previous three months, there were more people in employment and fewer unemployed people in the UK. 

Employment was up by 16,000 to 29.71 million. This resulted in an increase in the number of people employed by 336,000 on the year. In percentage terms, 71.4% of those aged between 16-64 were in work.

Unemployment also fell by 57,000 for the quarter and by 72,000 on the year. This brought the overall figure to 2.51 million people, or 7.8%. The number of people who have been unemployed for up to twelve months also fell by 104,000, amounting to 1.59 million. However, the number of people who have been out of work for over twelve months increased by 32,000 to 915,000. This is the highest figure since 1996. Of this number 474,000 have been looking for

work for over two years, itself the highest figure since 1997.

More encouragingly, the number of people who are claiming Jobseeker’s Allowance (JSA) fell by 21,200 to 1.48 million. Over the year this was down by 117,700. This is the lowest number recorded since 2011. The discrepancy in these numbers is because the claimant count only covers those receiving JSA, whilst many unemployed people are either ineligible for or do not claim the JSA. 

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.

Good news as UK unemployment continues to fall

In further encouraging economic news, the Office for National Statistics (ONS) announced in mid February that UK unemployment fell again between October and December 2012, by 14,000 to 2.5 million, and that the number of people in employment rose to its highest level ever recorded.

The unemployment rate in the UK now stands at 7.8%, a reduction of 0.1% from the previously reported quarter. The number of people now in employment was 29.7m, an increase of 154,000. 73% of these were in full-time employment and 27% were in part-time positions. This data indicates that over 580,000 more people are in employment than a year earlier.

Unfortunately, youth unemployment (those aged between 16-24) continued to rise, by 17,000 to 974,000, which represents a rate of 20.8%, up from the previously reported 20.5% in the three months to November 2012.

Martina Milburn of the Prince’s Trust, a charity founded by Prince Charles and dedicated to getting youth into employment, commented: “It is alarming to see that youth unemployment is back on the rise. It’s now four years since the start of the recession and many young people have been left with nothing but a four year gap on their CV.”

Whilst confounding economists, the positive overall employment figures belie the still moribund economy and the fact that average earnings growth, at 1.4% pa, still remains below the CPI inflation rate of 2.7%. Commenting on this, the ONS said: “there continues to be a cut in the real value of pay.”

The Work and Pensions Secretary, Ian Duncan Smith, had this to say on the latest positive figures: “Economically inactive people who are not available for work, that’s now at the lowest level since the early nineties. “No-one is saying this is easy, but if you were in France or Spain or Greece... at these figures and say I wish I was in that position.”

Issued by: Enable Independent Financial Life Planners 25c North Street, Bishops Stortford, Herts CM23 2LD Telephone: 01279 755950 - Fax: 01279 657339

Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Services Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.

NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.